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Developer Responsibilities update #2102

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Oct 2, 2024
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Developer Responsibilities update #2102

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Streams onboarding clarification
khadni Oct 2, 2024
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Add New Token section
khadni Oct 2, 2024
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nit
khadni Oct 2, 2024
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khadni Oct 2, 2024
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10 changes: 10 additions & 0 deletions src/content/data-streams/developer-responsibilities.mdx
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Expand Up @@ -55,6 +55,16 @@ Data Streams also provides pricing data related to assets that trade, primarily,
- Certain assets may not trade actively—if data is based on traded prices, it may not reflect the current state of the respective pool, and/or the current realizable price.
- There is a certain level of latency between (i) the observability of price data on DEXs, and (ii) the price data being reflected in our price feeds. This can increase the risk of frontrunning.

#### New Token Data Streams

When a token is newly launched, the historical data required to implement a rigorous data quality and risk analysis is unavailable. Consistent price discovery may involve an indeterminate amount of time. Developers are responsible for understanding the market and volatility risks inherent with such assets when choosing to integrate them into any products or services.

Newly issued tokens may have limited trading activity at launch. Thin order books can lead to substantial price fluctuation resulting in significant volatility. Developers are responsible for being aware, when choosing to integrate such tokens into any products or services, of the inherent volatility, potential for illiquidity, and significant price fluctuation that often characterize newly issued tokens as market attempts to find a clearing level, i.e equilibrium price.

Token prices may exhibit oscillations between two or more price points within regular intervals due to price disagreements across exchanges. In early trading sessions, wide bid and ask spreads may reflect uncertainty about the token market value. Developers are responsible for understanding the possibility of token price oscillation of this nature when choosing to integrate newly issued tokens into any products or services.

Developers implementing Chainlink New Token Data Streams are responsible for independently verifying the liquidity, quality and stability of the assets pricing when integrating them in their use cases

### Application Code Risks

Developers implementing Chainlink Data Streams are solely responsible for instituting risk mitigations, including, but not limited to, data quality checks, circuit breakers, and appropriate contingency logic for their use case. Some general guidelines include:
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